The Central Bank of Nigeria (CBN) has reaffirmed its commitment to adopting a full-fledged inflation-targeting (IT) monetary policy framework, as part of efforts to strengthen price stability and enhance economic resilience.
The apex bank also pledged to deepen engagement with the academic and research community to support the transition.
CBN Deputy Governor in charge of Economic Policy, Dr Muhammad Abdullahi, made this known during a strategic session with the Nigerian Economic Society (NES) and members of the academic community in Abuja.
Abdullahi described the dialogue as timely and crucial to Nigeria’s ongoing economic reform programme, noting that the shift to inflation targeting represents a move toward a transparent, forward-looking, and rules-based monetary policy system.
According to him, the framework will serve as a key nominal anchor for the economy by guiding market expectations and reducing the impact of supply-side shocks.
He said it would also improve transparency, accountability, and the credibility of monetary policy, while supporting long-term investment planning.
“With global uncertainties such as geopolitical tensions and volatile energy prices putting pressure on emerging economies, a credible monetary anchor is essential to strengthen Nigeria’s resilience,” Abdullahi said.
He highlighted reforms already implemented to support the transition, including a return to orthodox monetary policy tools, withdrawal from quasi-fiscal activities, and strengthened institutional independence.
Other measures, he said, include foreign exchange market reforms such as rate unification and the introduction of electronic trading platforms, which have helped reduce volatility and improve price discovery.
The deputy governor added that initiatives like bank recapitalisation, improved prudential oversight, enhanced policy coordination with fiscal authorities, and better communication strategies had further stabilised the financial sector.
Abdullahi noted that these reforms were already yielding results, with headline inflation declining from 34.8 per cent in late 2024 to 15.1 per cent in early 2026, driven by sustained monetary tightening and improved policy discipline.
He expressed confidence that Nigeria was on track to achieve low and stable inflation, with a medium-term target of 6 to 9 per cent, barring major external shocks.
Also speaking, Director of the Monetary Policy Department at the CBN, Dr Victor Oboh, reiterated the bank’s commitment to strengthening collaboration with the NES to improve policy effectiveness and macroeconomic stability.
Oboh emphasised that the success of inflation targeting depends not only on technical capacity but also on public trust and effective communication.
He noted that academics and researchers play a critical role in shaping economic narratives, influencing expectations, and supporting evidence-based policymaking.
While acknowledging potential challenges, including short-term trade-offs and the need to strengthen institutional credibility, Oboh expressed optimism that collaboration between the CBN and NES would advance Nigeria’s monetary policy objectives.
In his remarks, President and Chairman of the NES Council, Dr Baba Musa, commended the CBN for its reform-driven approach to monetary and financial sector management.
He praised the bank’s openness and willingness to engage stakeholders, while reaffirming the society’s support for the CBN’s stabilisation efforts.
“Nigeria needs a credible Central Bank, and the Nigerian Economic Society needs a Central Bank worth standing with,” Musa said.
Never miss a moment! Get the stories shaping Nigeria, delivered straight to your phone. Follow Peoplesdaily Newspaper on WhatsApp for breaking news, exclusive reports, and the headlines everyone will be talking about, before anyone else.
